Medicaid, in its current form, will likely soon change. Passed in July, President Trump’s “Big Beautiful Bill” came with major Medicaid cuts.
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Specifically, nearly $1 trillion in Medicaid reductions and other policy changes are on the horizon, according to Axios. In total, nearly 12 million people are expected to lose coverage due in 2027 — largely due to changes in Medicaid work requirements.
It’s possible you could be included in this group and not yet realize it, as states have different names for their Medicaid programs, Axios noted. Some states may also be hit harder by the cuts, as the percentage of costs paid by the federal government varies — with a national average of 60%.
“If you live in a rural area, contact your local hospital or clinic and ask them if they will be closing, and if yes, can they recommend where else you can go for healthcare needs,” said Chris Orestis, president at The Retirement Genius.
He proposed doing the same if you’re in a nursing home or have a loved one in a nursing home relying on Medicaid.
Thankfully, you have some time to prepare for these cuts, but don’t delay. Here’s a look at four money moves retirees should make now, in case your Medicaid benefits are on the line.
Get Informed on Insurance Costs
“If you get your health insurance through an Affordable Care Act (ACA or Obama Care) plan, ask your agent or local exchange contact what you should be expecting for changes in your benefits — as well as increasing premiums and higher out-of-pocket expenses,” Orestis said.
Knowing what to expect cost-wise might not be pleasant, but it’s important for planning purposes. This will allow you to know what kind of budgeting adjustments you’ll need to make.
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Join a Medicare Advantage Program
If you lose Medicaid — or are informed you will soon lose coverage — you might be able to sign up for Medicare or change your existing Medicare coverage. It’s important to sign up or make changes promptly, because you’re only able to do so for a limited time.
Don’t procrastinate making this financial move, because it can help fill the gaps left by Medicaid.
Research Medicare Savings Programs
Assuming you’re currently on Medicare or will qualify due to Medicaid cuts, you may qualify for a Medicare Savings Program. This could allow you to get financial assistance from your state to pay Medicare Part A and Part B premiums, as well as deductibles, coinsurance and copayments.
This money move is important, as it may allow you to save a considerable amount on healthcare.
Consider Downsizing
If you’re confident you’re going to lose Medicaid coverage, now might be the time to make major life changes. For example, you could sell a home that’s too large for your current needs or become a one-car household. The money you save will create more space in your budget for healthcare expenses. This can provide peace of mind, as you’ll be able to afford to pay more for vital care.
Navigating Medicaid cuts can feel overwhelming, but you don’t have to go it alone. “If you are not sure who to contact for assistance, look to the website of your state government for information and don’t hesitate to contact your local legislative representative or staff in the offices of [your] elected members of Congress to ask for help,” Orestis said.
While you’re at it, he added you should also feel comfortable sharing challenges you’re facing due to Medicaid cuts and voicing your opinion about it.
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This article originally appeared on GOBankingRates.com: 4 Smart Money Moves Retirees Must Make Before Potential Trump Medicaid Cuts
